10 Southern California Defendants Federally Charged in $270 Million Medi-Cal and Medicare Fraud Takedown

Federal prosecutors in the Central District of California announced criminal charges against 10 Southern California defendants on June 23, 2026, as part of a nationwide health care fraud takedown that named 455 defendants and alleged more than $6.5 billion in false claims. The local cases include a Whittier woman tied to a nearly $270 million Medi-Cal scheme and a San Fernando Valley man accused of running hospice companies that fraudulently billed Medicare $27 million.

Health care fraud cases bring some of the heaviest exposure in federal court — multi-decade sentences, mandatory restitution, civil forfeiture, and professional licensing consequences. For anyone arrested or under investigation, the strategic decisions made in the first weeks shape the entire trajectory of the case.

What Happened

The U.S. Attorney’s Office for the Central District of California announced charges on June 23, 2026, against 10 defendants accused of defrauding Medi-Cal, Medicare, the U.S. Department of Labor’s Office of Workers’ Compensation Programs, and other government health benefit programs. The cases were filed as part of a national enforcement action coordinated by the Department of Justice’s National Fraud Enforcement Division and the Department of Health and Human Services Office of Inspector General (HHS-OIG).

The headline local case involves Christina Mareik, 61, of Whittier, arrested on June 17 on a federal criminal complaint charging her with health care fraud. Prosecutors allege Mareik played a central role in a scheme that submitted nearly $270 million in fraudulent claims to Medi-Cal over an 11-month span for expensive prescription drugs that were not medically necessary and in many cases never delivered to patients. Mareik allegedly worked alongside Paul Richard Randall, 67, of Orange (a patient marketer who has already pleaded guilty), Kyrollos Mekail, 38, of Moreno Valley (the owner of Monte Vista Pharmacy), and Patricia Anderson, 59, of West Hills. Medi-Cal paid out more than $178 million on the bogus claims. Mareik is free on $100,000 bond, with her arraignment scheduled for July 23, 2026.

A separate case charges Oren David Shachar, 59, of Van Nuys, Abraham Shin, 66, of Corona, and Jeannie Choi, 57, of Torrance, with conspiring to defraud Medicare of approximately $27 million through a network of four hospice companies — Gentle Touch Hospice Care (Valley Glen), Oxford Hospice Care (Montclair), Art of Hospice (Encino), and Holly Trinity Hospice (Glendale). The 16-count indictment alleges that Shachar billed Medicare for hospice services provided to patients who were not terminally ill — and in some cases were already deceased — while paying illegal kickbacks to marketers. Trial is set for August 11, 2026.

Other defendants charged include Brenda Lee Lopez, 63, of Norwalk, charged with seven counts of health care fraud and six counts of aggravated identity theft for a $9 million laboratory testing scheme; Lynn Galbraith, 59, of Anaheim, charged with health care fraud over $2.2 million in fraudulent hospice billings to Medicare; Dr. Eugene Richard Dorsey, 83, of Orange, a psychiatrist charged with falsifying psychiatric reports to qualify claimants for federal workers’ compensation; and three physicians — Wisam Khader, 36, of Irvine, Patrick Murphy, 40, of Irvine, and Justin Evans, 37, of Lakewood, Colorado — charged with conspiring to write nearly 90 controlled-substance prescriptions to one another for drugs including amphetamine, oxycodone, and morphine.

All cases are proceeding in the U.S. District Court for the Central District of California in Los Angeles and Santa Ana. The local takedown is part of a coordinated nationwide effort that resulted in the seizure of more than $182 million in cash, luxury vehicles, jewelry, and other assets. All defendants are presumed innocent unless and until proven guilty in court.

Charges Involved

Federal Health Care Fraud — 18 USC 1347

The core federal health care fraud statute, 18 USC 1347, makes it a crime to knowingly and willfully execute a scheme to defraud any health care benefit program. Each count carries a statutory maximum of 10 years in federal prison, and the maximum jumps to 20 years if the fraud results in serious bodily injury — and to life if it results in death. Health care fraud charges typically include restitution and forfeiture of all proceeds of the scheme.

Conspiracy to Commit Health Care Fraud — 18 USC 1349

When two or more people allegedly agree to defraud a health care benefit program, prosecutors can charge conspiracy under 18 USC 1349. The conspiracy charge carries the same penalties as the underlying health care fraud statute. It also allows the government to introduce statements and conduct of co-conspirators against each defendant — significantly broadening the admissible evidence at trial.

Wire Fraud — 18 USC 1343

Most health care fraud schemes involve electronic claim submissions, billing systems, or wire transfers — which creates parallel exposure under the federal wire fraud statute, 18 USC 1343. Each wire fraud count carries up to 20 years in federal prison, or up to 30 years if a financial institution is affected. Wire fraud counts can be charged per transaction, meaning a single scheme can produce dozens of separate counts.

Anti-Kickback Statute — 42 USC 1320a-7b

The federal Anti-Kickback Statute (42 USC 1320a-7b) makes it a crime to knowingly offer, pay, solicit, or receive anything of value to induce referrals of items or services payable by a federal health care program. Penalties include up to 10 years in federal prison per count, plus fines of $100,000 per violation and mandatory exclusion from federal health programs. Kickback charges are common in hospice, laboratory, and durable medical equipment fraud cases.

Aggravated Identity Theft — 18 USC 1028A

When fraud schemes use the identities or signatures of real medical providers, prosecutors charge aggravated identity theft under 18 USC 1028A. This carries a mandatory consecutive 2-year sentence per count — meaning it must be served on top of any sentence for the underlying health care fraud charges and cannot run concurrently. Multiple counts can stack quickly.

Money Laundering — 18 USC 1957

Spending or moving criminally derived proceeds in transactions over $10,000 can be charged under 18 USC 1957, with each count carrying up to 10 years in federal prison. Most large health care fraud cases include money laundering counts because the proceeds typically flow through bank accounts, business entities, and asset purchases.

Controlled-Substance Distribution by Physicians — 21 USC 841 and 21 USC 846

When physicians prescribe controlled substances outside the course of professional practice or without a legitimate medical purpose, those prescriptions can be charged as drug distribution under 21 USC 841, and a conspiracy to do so can be charged under 21 USC 846. The three physicians charged with prescribing to one another face a statutory maximum of 40 years in federal prison. These charges also typically lead to DEA registration revocation and state medical board action.

Asset Forfeiture and Restitution

Health care fraud cases almost always include both criminal forfeiture of proceeds and assets purchased with fraud proceeds (homes, vehicles, jewelry, collectibles) and mandatory restitution orders to repay the defrauded programs. In the Mareik case, federal authorities have already seized luxury cars and rare baseball cards and initiated forfeiture proceedings on homes purchased with the proceeds. Forfeiture defense often runs on a parallel track to the criminal case.

Collateral Consequences for Medical Professionals

Health care fraud convictions trigger automatic exclusion from Medicare, Medicaid, and other federal health care programs, plus referral to state medical boards for license revocation. The DEA can also pursue administrative actions to revoke controlled-substance prescribing authority. For non-citizens, health care fraud convictions can be classified as aggravated felonies under 8 USC 1101(a)(43), triggering mandatory removal proceedings.

What Defendants and Their Families Should Know

If you or a loved one has been arrested or contacted by federal agents in a health care fraud investigation, the most important protection is your right to remain silent. FBI and HHS-OIG agents are highly trained interrogators, and even casual statements during an initial visit — sometimes framed as a “compliance review” or an “informational interview” — can become central evidence in a later prosecution. Politely decline to answer questions and ask for an attorney before any further contact. Do not consent to searches of files, computers, or business records without a warrant or attorney guidance.

Federal health care fraud cases are document-intensive and often involve years of billing data, electronic medical records, prescriptions, and communications. A criminal defense attorney can review the government’s evidence for weaknesses, evaluate compliance defenses, examine the legitimacy of the underlying medical services, and identify constitutional issues with searches, seizures, and grand jury subpoenas. The first 48 to 72 hours after arrest are critical for detention hearings, asset preservation, and protecting business operations.

Families should understand what to expect at the initial appearance and arraignment. The defendant will be advised of the charges and the court will address detention. In health care fraud cases, bond is often granted but may include significant conditions, including travel restrictions, business activity limits, and asset freezes. Loved ones should avoid discussing case details on jail phone calls or in visits, as those communications are recorded and routinely used as evidence. Anything written or said in a visiting room can become an exhibit.

Early intervention matters because the government’s investigation almost always continues after the first wave of charges. Superseding indictments, additional counts, and new defendants can be added. The Department of Justice’s Health Care Fraud Strike Force uses data analytics to identify additional billing anomalies, and cooperators are often added as the case progresses. An experienced attorney can engage with prosecutors early, preserve favorable evidence, evaluate proffer and cooperation options, and protect the defendant’s licensing, business, and asset positions. Every defendant remains presumed innocent unless and until the prosecution proves guilt beyond a reasonable doubt.

Speak With a Criminal Defense Attorney Now

If you or someone you love is facing federal health care fraud, kickback, identity theft, or controlled-substance distribution charges in Greater Los Angeles, time is critical. Attorney Chris Nalchadjian of KN Law Firm, APLC offers a free consultation and is available 24/7 to review your case and protect your rights. Call (888) 950-0011 to speak with a criminal defense attorney today.